Tata Motors: A Case Study Of Cash Management In India

Tata motors have gone from a sheen losing family business to a global profitable brand. In April 2012 share price of Tata motors surged 90 % as compared to 10 % increase in BSE
Reasons for turnaround
At the beginning when TATA acquired JLR, world was entering recession and the worst recession of them all. There was a bad sentiment everywhere. Also, JLR being a British brand, the deal was not very well perceived due to the coming Indian ownership and the fears of outsourcing of jobs, technology and the brand to India.
But that was 2008 and today JLR is contributing 50% of the overall profits of TATA Motors. All the stories and rumors were put to rest when the £400m engine plant in the Midlands was announced that would potentially create up

The systems and software for managing operations were now handled by Tata’s own IT firm Tata technologies saving Jaguar Land Rover millions of dollars.
2) Cash Management: During the acquisition of JLR there was a large debt taken to pay ford for the acquisition. This area of Cash management was one of the major areas where lot of work had to be done to devise a cash management system.
3) Brand Image Makeover: JLR a British brand was always perceived as premium high end luxury brand but TATA added new products like Evoque which actually made the brand image a bit soft targeted towards urban people. They also designed new products specific targets like women looking for luxury SUV etc.
4) Innovation and New Product Development TATA infused a new breeze of fresh air into the JLR product team and it resulted in refreshing the old JLR brands which revived them in the market and also introduction of new brands like Evoque which single handedly is turning the fortunes of JLR and hence TATA Motors.
5) Manpower Management: After TATA acquired JLR, the workforce was reduced by approximately 10000 from the figure of 27000. This reduces the expenses of Tata which can ultimately increase the profitability.
Financial

A major part of this success can be attributed to the JAGUAR AND LAND ROVER brands. Jaguar and land rover both have been part of a larger conglomerate for a long time, however their potential was not unlocked then, TATA MOTORS succeeded in doing that. Jaguar and land rover steadily started regaining their rhythm in the market and contributed towards creating a good brand value for TATA MOTORS. TATA MOTORS-JLR brand soared 172% in one year to $8.45 billion from only $3.1 billion in